On May 3, 2016, the EU Council published the final text of the Benchmark Regulation as adopted by the EU Parliament on April 28, 2016, and it is expected to take affect in mid-2017. The European Commission first published its legislative proposal for a Benchmark Regulation over 2½ years ago. The intervening time has seen considerable debate on its text and, in particular, its controversial extraterritorial application. When it comes into force, this Benchmark Regulation will regulate not only the well-known benchmarks such as LIBOR (the London Interbank Offered Rate), but also bespoke indices designed for individual structured products. It will also restrict the use of non-EU benchmarks in relation to EU instruments and contracts. We have also seen the application and feedback on IOSCO’s (International Organization of Securities Commissions) Principles for Financial Benchmarks and the extension of the UK’s benchmark regulation regime.
Please join Mayer Brown partner Mark Compton as he explains the scope and implications of this new regulatory regime. Topics will include:
- The EU Benchmark Regulation in the context of manipulation scandals, the United Kingdom’s benchmark regulation regime and IOSCO’s global principles
- Its scope and requirements as set out in its final text
- Its broad extraterritorial effect
- Secondary legislation and next steps
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Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.